PSD3
RegulationsPayment Services Directive 3
Definition
PSD3 is the third Payment Services Directive, proposed by the European Commission in June 2023 alongside PSR as part of the package revising PSD2. PSD3 clarifies and updates provisions for authorization and supervision of Payment Institutions (PIs), incorporates Electronic Money Institutions (EMIs) as a sub-category of PIs, embeds and repeals EMD2 requirements, and includes rules on cash withdrawal services offered by retailers or independent ATM deployers.
What is Payment Services Directive 3?
In June 2023, the European Commission issued a legislative package aimed at modernizing and streamlining the EU's retail payments framework. This package consists of two key legislative acts revising PSD2: the Payment Services Regulation (PSR) and the third Payment Services Directive (PSD3). The European Parliament adopted amendments on both proposals in April 2024, with the Council's position awaited ahead of trilogue negotiations.
PSD3 Timeline
European Commission proposes PSD3 as part of the PSD2 revision package
European Parliament adopts amendments on the PSD3 proposal
Council position expected, followed by trilogue negotiations
Final adoption and national transposition period
Related Terms
PSD2
Payment Services Directive 2The Payment Services Directive 2015/2366, as amended or updated from time to time, including the ass...
PSR
Payment Services RegulationThe Payment Services Regulation is part of the European Commission's June 2023 legislative package r...
FIDA
Financial Data Access RegulationFIDA is an upcoming EU regulation that will extend Open Finance beyond payments to cover savings, in...
Frequently Asked Questions
What is PSD3?
PSD3 is the third Payment Services Directive, proposed in June 2023 to revise PSD2. It focuses on authorization and supervision of Payment Institutions while PSR handles operational rules for payment services.
How does PSD3 affect Electronic Money Institutions?
PSD3 incorporates EMIs as a sub-category of Payment Institutions, embedding EMD2 requirements into the new framework and repealing the separate EMD2 directive.
What is the difference between PSD3 and PSR?
PSD3 is a directive (requiring national transposition) focusing on authorization and supervision, while PSR is a regulation (directly applicable) covering operational rules for payment services. Together they form the revised EU payments framework.
When will PSD3 come into effect?
The European Parliament adopted amendments in April 2024. After the Council's position and trilogue negotiations, there will be an adoption period followed by time for EU Member States to transpose the directive into national law.
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